Recent steel market remained weak, however, a variety of good news are pouring in, the steel city is energy accumulation, may have recently market, a preliminary analysis of the future to promote the steel market bottoming factors, mainly the following aspects:
1, the recent market overhaul cut message to bring to market a certain boost. From mid-July, crude steel output 1.651 million tons, crude steel output of the key large and medium-sized steel enterprises in mid-July, mid-ring fell 0.38 percent, the national estimate is 1.993 million tons, an increase of 1.8%. Mid-July, crude steel output continued to rise slightly, but due to the domestic steel prices suffered a crash in July, many steel mills have been forced to start the repair cut.
2, the price drop approaching the cost to improve the relationship between supply and demand. After a period of time shock downstream, the majority of steel prices approaching the cost line. Such as Shanghai rebar futures tons below 3800 yuan / ton, and its average cost is similar, iron and steel enterprises profits sharply decline, or even losses. Affected, China crude steel production since the beginning of this year show a continued decline trend year on year growth has dropped to 0.6% in June to the lowest level in three years if such a price close to or below cost to continue, there will be crude steel production down situation.
3, economic growth at the more important position, and stimulating the real increase in demand. In view of the deteriorating external environment, China's economic growth "broken" at the national level of economic growth on a more important position. This means that the introduction of more measures to protect the economic growth is expected in the years also there have been several "drop accurate, continue to cut rates to reach 100 or even 150 basis points. Even so, our interest is still much higher than the 0-0.5% level of developed countries continue to cut space. Loose monetary decision making will be greater efforts to start the major needs of the project, including the railway, municipal, energy, telecommunications, health, education and other areas of investment projects, in order to increase effective demand, zoom in easing monetary policy effects boost market confidence, promote economic growth.
4, Raw materials, a strong market support to the rising steel prices. Iron ore, iron ore prices remained stable, but the decline in iron ore port stocks ore confidence in the business gradually picked up. The data show that As of last weekend, the country's 30 major ports in the total inventory of iron ore was 97.74 million
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